Forget punting on banks – buy this high-yielding insurer instead

Bank stocks are still toxic, and much of the financial sector remains out of favour. But this insurer offers solid returns with relatively low risk, says Phil Oakley.

Finding a decent source of income is getting harder. Interest rates haven't improved, but with lots of investors chasing the defensive stocks' story, dividend yields are no longer as tempting as they were.

That makes insurer RSA- still yielding more than 8% - look pretty tempting. So should you buy it?

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.